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FLS

Flowserve NYSE:FLS Stock Report

Last Price

US$29.10

Market Cap

US$3.8b

7D

2.4%

1Y

-26.6%

Updated

28 Jun, 2022

Data

Company Financials +
FLS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health5/6
Dividends4/6

FLS Stock Overview

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally.

Flowserve Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Flowserve
Historical stock prices
Current Share PriceUS$29.10
52 Week HighUS$43.63
52 Week LowUS$27.50
Beta1.59
1 Month Change-8.17%
3 Month Change-17.84%
1 Year Change-26.65%
3 Year Change-44.93%
5 Year Change-38.01%
Change since IPO653.67%

Recent News & Updates

May 30
Flowserve (NYSE:FLS) Is Due To Pay A Dividend Of US$0.20

Flowserve (NYSE:FLS) Is Due To Pay A Dividend Of US$0.20

Flowserve Corporation's ( NYSE:FLS ) investors are due to receive a payment of US$0.20 per share on 8th of July. Based...

May 16
Flowserve (NYSE:FLS) Will Pay A Dividend Of US$0.20

Flowserve (NYSE:FLS) Will Pay A Dividend Of US$0.20

Flowserve Corporation ( NYSE:FLS ) will pay a dividend of US$0.20 on the 8th of July. This makes the dividend yield...

Shareholder Returns

FLSUS MachineryUS Market
7D2.4%-1.1%1.7%
1Y-26.6%-20.6%-20.4%

Return vs Industry: FLS underperformed the US Machinery industry which returned -19.8% over the past year.

Return vs Market: FLS underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is FLS's price volatile compared to industry and market?
FLS volatility
FLS Average Weekly Movement5.3%
Machinery Industry Average Movement6.0%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: FLS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: FLS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191215,000Robert Rowehttps://www.flowserve.com

Flowserve Corporation designs, develops, manufactures, distributes, and services industrial flow management equipment in the United States, Europe, the Middle East, Africa, Asia, and internationally. It operates in two segments, Flowserve Pump Division (FPD) and Flow Control Division (FCD). The FPD segment offers custom and pre-configured pumps and pump systems, mechanical seals, auxiliary systems, replacement parts, upgrades, and related aftermarket services, including installation and commissioning services, seal systems spare parts, repairs, advanced diagnostics, re-rate and upgrade solutions, retrofit programs, and machining and asset management solutions, as well as manufactures a gas-lubricated mechanical seal for use in high-speed compressors for gas pipelines.

Flowserve Fundamentals Summary

How do Flowserve's earnings and revenue compare to its market cap?
FLS fundamental statistics
Market CapUS$3.83b
Earnings (TTM)US$96.05m
Revenue (TTM)US$3.50b

39.6x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FLS income statement (TTM)
RevenueUS$3.50b
Cost of RevenueUS$2.49b
Gross ProfitUS$1.02b
Other ExpensesUS$919.67m
EarningsUS$96.05m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.74
Gross Margin28.98%
Net Profit Margin2.74%
Debt/Equity Ratio71.1%

How did FLS perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

109%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FLS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FLS?

Other financial metrics that can be useful for relative valuation.

FLS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA14.9x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does FLS's PE Ratio compare to its peers?

FLS PE Ratio vs Peers
The above table shows the PE ratio for FLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average40.3x
JBT John Bean Technologies
30.6x18.5%US$3.6b
WBT Welbilt
46.2x55.7%US$3.4b
AQUA Evoqua Water Technologies
73.5x33.8%US$3.9b
TKR Timken
10.9x13.0%US$4.1b
FLS Flowserve
39.6x54.2%US$3.8b

Price-To-Earnings vs Peers: FLS is good value based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (40.3x).


Price to Earnings Ratio vs Industry

How does FLS's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: FLS is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the US Machinery industry average (21.5x)


Price to Earnings Ratio vs Fair Ratio

What is FLS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FLS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ratio47.8x

Price-To-Earnings vs Fair Ratio: FLS is good value based on its Price-To-Earnings Ratio (39.6x) compared to the estimated Fair Price-To-Earnings Ratio (47.8x).


Share Price vs Fair Value

What is the Fair Price of FLS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FLS ($29.1) is trading below our estimate of fair value ($55.33)

Significantly Below Fair Value: FLS is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: FLS is good value based on its PEG Ratio (0.7x)


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Future Growth

How is Flowserve forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


54.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLS's forecast earnings growth (54.2% per year) is above the savings rate (1.9%).

Earnings vs Market: FLS's earnings (54.2% per year) are forecast to grow faster than the US market (13.8% per year).

High Growth Earnings: FLS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FLS's revenue (5.8% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: FLS's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLS's Return on Equity is forecast to be low in 3 years time (14.4%).


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Past Performance

How has Flowserve performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FLS has a large one-off loss of $54.3M impacting its March 31 2022 financial results.

Growing Profit Margin: FLS's current net profit margins (2.7%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: FLS's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: FLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FLS had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Machinery industry average (24%).


Return on Equity

High ROE: FLS's Return on Equity (5.9%) is considered low.


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Financial Health

How is Flowserve's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: FLS's short term assets ($2.4B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: FLS's short term assets ($2.4B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: FLS's net debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: FLS's debt to equity ratio has reduced from 93.8% to 71.1% over the past 5 years.

Debt Coverage: FLS's debt is not well covered by operating cash flow (14.7%).

Interest Coverage: FLS's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


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Dividend

What is Flowserve current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FLS's dividend (2.75%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: FLS's dividend (2.75%) is low compared to the top 25% of dividend payers in the US market (4.25%).


Stability and Growth of Payments

Stable Dividend: FLS's dividends per share have been stable in the past 10 years.

Growing Dividend: FLS's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (108.5%), FLS's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (80.8%), FLS's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Robert Rowe (50 yo)

5.17yrs

Tenure

US$12,478,105

Compensation

Mr. Robert Scott Rowe has been Chief Executive Officer and President of Flowserve Corporation since April 1, 2017. Mr. Rowe served as Interim President of Flowserve Pumps Division at Flowserve Corporation...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD12.48M) is above average for companies of similar size in the US market ($USD6.87M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: FLS's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: FLS's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Flowserve Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Flowserve Corporation
  • Ticker: FLS
  • Exchange: NYSE
  • Founded: 1912
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$3.827b
  • Shares outstanding: 130.64m
  • Website: https://www.flowserve.com

Number of Employees


Location

  • Flowserve Corporation
  • 5215 North O'Connor Boulevard
  • Suite 700
  • Irving
  • Texas
  • 75039
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.